9911796707
TMI Blog1991 (3) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... eal regarding the grant of interest under section 214 of the Income-tax Act, 1961 ?" For the assessment year 1972-73, the Income-tax Officer treated the assessee-company as one in which the public were not substantially interested. He had done so for the assessment years 1969-70 and 1971-72 also. In doing so, he had relied on various clauses of the articles of association which provided for restricting the right of shareholders to transfer the shares. The Appellate Assistant Commissioner accepted the assessee's claim and the Tribunal confirmed the order of the Appellate Assistant Commissioner on the issue. However, the dispute is not involved in this reference. On completion of regular assessment, the assessee Is tax liability worked ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted out that the assessee in that case was denying his liability on the ground that he was not liable to pay advance tax at all. In the present case, there was no such ground. Therefore, the Tribunal was not justified in holding the appeal against non-payment of interest under section 214 before the Appellate Assistant Commissioner to be competent. Shri Dastur, learned counsel for the assessee, fairly admitted that the Full Bench judgment concerned had interpreted the expression "denying his liability to be assessed under the Act" in that case but it was so as the assessee had contended that he could appeal against the charging of interest under that expression. According to him, the Full Bench judgment could not be taken as an authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance tax. The appellate authorities, i.e., the Appellate Assistant Commissioner and the Tribunal, have done what the Income-tax Officer himself should have done. To take technical stand and to deprive an assessee of his legitimate dues, to say the least, is not expected of the Department which is obliged under the statute to grant interest on advance tax paid in excess of the demand raised on regular assessment. The Department has no case whatsoever on merits. Since a legal question has been raised, we are obliged to answer it. The admitted position in this regard is that the appeal was filed by the assessee before the Appellate Assistant Commissioner not against the non-payment of interest under section 214 only. There were other grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X
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